The tenant fails to pay their last month's rent and leaves the place needing new flooring and paint.

Assuming you have 3,000 sqft just paint and carpet can cost you 25k or more.

I've already renovated one of the bathrooms, and I’m planning to paint the interior, update the kitchen cabinets, possibly sand the wood floors, build a fence is a corner lot and increase the rent for the room since my tenant is currently renting the entire 3-bedroom, 2-bathroom house for $800 a month.

That hard work includes making the investments that the current owner hasn't made (nicer kitchens, new flooring, fresh coat of paint, etc.), removing tenants and marketing to new tenants.

PAINTING.

I would point out that you have a higher end home here.. its not a 70k rental in the mid west were you just squirt some paint on the walls and put die on the carpet etc..

Paint & finished basement What was the outcome?

i.e. paint, flooring, cabinets, tile, etc.  

New roof, exterior painting, new flooring, bathroom updates, finished new living space What was the outcome?

The insurances like AAA are strict on the paint, roof, plumbing, electric etcThe houses are in Stockton, California.Thanks